Supply chain integration, a key strategic capability for improving product and service value propositions: empirical evidence

The globalised and highly competitive business environment highlights the need for manufacturing companies to manage beyond the boundaries of the organisation. Their aim would thus be to find and improve their capabilities and thereby offer new or improved value propositions. Therefore, supplier and customer integration, in addition to internal integration, become the key enablers to develop sustainable competitive advantages. The purpose of this study is to investigate the impact of this wide view of supply chain integration (SCI) on the strategic capabilities of manufacturing companies. These capacities are different for the product- and service-based values and can be used to build an integrated value chain model. Data from 106 manufacturing companies of the Basque Country were used to test such a model. Hierarchical analysis regression was used to determine the impact of each individual SCI dimension on the capabilities for creating product and service proposed value. In addition, different supply integration patterns are considered.